In a groundbreaking move to boost foreign investment and revitalise the real estate sector, the Kingdom of Saudi Arabia has announced plans to open the real estate market in designated areas of the kingdom to foreign buyers.

 

Under a newly approved law, foreigners will be able to purchase property in the capital Riyadh and port city Jeddah, starting from January next year, reported SPA.

 

The key initiative is aimed at attracting foreign investment and boost the non-oil economy, it stated.

 

As per the report, the new property ownership law will apply to three main categories of non-Saudis:

*Foreigners (expats) currently living in the kingdom under valid residency permits.

*Foreign companies licensed by the relevant Saudi authorities and

*International investors seeking to set up economic or real estate projects in the country.

 

The announcement came after the Saudi cabinet approved the updated legislation, which was praised by Majed Al Hogail, the Minister of Municipal and Rural Affairs and Housing, and Chairman of the Real Estate General Authority.

 

"The updated law aims to increase real estate supply, attract global investors and developers, and further stimulate foreign direct investment in the Saudi market," stated the minister. 

 

Al Hogail added that the law is part of a broader real estate reform strategy and includes controls to protect Saudi citizens. "It is an extension of the Kingdom’s comprehensive real estate reform programme," he added.

 

The Real Estate General Authority will identify which geographic areas are open to foreign ownership and release detailed executive regulations within 180 days, fostering international participation while safeguarding Saudi interests, said the SPA report. 

 

While non-Saudis will be able to buy real estate in specific areas including Riyadh and Jeddah, the ownership in Makkah and Madinah will be subject to additional conditions and regulatory oversight, it added.